Gem Diamonds bolsters Q4 diamond exports

Africa-focused Gem Diamonds said it exported a total of 32,353 carats of diamonds from its Leteng mine during the fourth quarter, up 32% from the same quarter in 2010.

The average value of the exports for the period was US$2.543 per carat versus US$3.291 per carat in the same quarter in 2010.

CEO Clifford Elphick commented, "Leteng has continued to demonstrate its position as one of the world's leading diamond mines. Operationally we have continued to recover some of the world's finest and largest diamonds."

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Gem Diamonds said it ended the year with highest carat recovery in the history of the Leteng mine and with continued recovery of high value and exceptionally large diamonds.

"Through the development of our sales and marketing strategy and our cutting and polishing capabilities, we are increasingly gaining exposure to the full diamond value chain on our most valuable diamonds, working to grow and enhance our margins and increase profitability."

Project Kholo, Leteng's production expansion project, received board approval in November 2011 and Gem Diamonds expects it will be in full production by July 2014.

Ellendale achieved an average price of US$4 269 per carat during the period for its fancy yellow diamonds supplied under the long-term off-take agreement with Tiffany & Co. The average price in the equivalent quarter in 2010 was US$3 482 per carat.

The group said it has a strong cash position, with around US$158m cash on hand.